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Mad Money

News/Business. (2013)

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Cramer 9, Cisco 7, Briggs & Stratton 6, Texas 5, America 5, Us 4, Ulta 4, Jim 4, Moneygram 4, New York 4, Costco 4, Autozone 3, Western Union 3, Yo 3, Stacy 3, Michael Kors 3, Cummins 3, Westport 3, U.s. 3, Geico 2,
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  CNBC    Mad Money    News/Business.  (2013)  

    December 6, 2013
    11:00 - 12:01am EST  

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the quarter one of the best quarters of this year -- of this reporting season along with conn's. has had enough time under the belt to get the kinks out. so i think pvh will do well. it was disconcerting that the stock got hit today for 65 cents. yeah, it was down 65 cents, though, to 130. and that's daunting on a big up day. that does concern me as a former trader that somebody knows something but the details, the clues are all there. tuesday's more retail. and we know retail's been incredibly inconsistent lately. more on that later. if you've been executing well, you can make money here. so i would bet that this first quarter that we get from burlington coat factory as a public company, i think it could be a good one.
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i like that idea. one of the stocks we've been seemingly behind forever is auto zone, azl, because the average car on the highway is 11 years old. they need to keep the cars running. we heard pep boys on monday. pep boys is bad. do not immediately extrapolate autozone. now, there's a trick to the stock you have to know about. people almost always initially dislike the quarter when it comes out. the first is almost always bad and that's been the time to buy autozone. prep yourself, understand the real story is the incredible shrink share count. they had 563 million shares outstanding, now only 535 million. committed to the buyback. and they've come in with guns blazing within a couple of days after reporting. wait for the quarter, expect the stock to get hammered, do a little work, but remember, this is a teflon equity. go check the chart, it will bounce back, be ready. toll brothers. well, we know them, right? that's the higher end home
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builder. and in some ways this might be the most important tell for the week. i like toll's management. they were upfront during the crisis about what higher rates and lower rates mean. whether things have gotten too hot or too cold. is there a level where business drops off? is there a level where things are overheating? i don't think like the home builders, but i think the home-related stocks might get a kick up higher. did you see lowe's today? that stock's on fire today. wednesday's costco day. remember we visited the harlem store, it was good. now there's a lot of fretting when cisco reported numbers this week. some say they were disappointing. i say you've got to put every number in context. costco is doing better than about everyone else in retail. and that's what you need to
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think about when the company reports next week. last time i got hammered. my charitable trust swept a lot of stock. realizing costco's quarter was terrific versus the rest of the group. once we saw the rest of the group. the stock went up ten points in a straight line. i think it could happen again. we also got a real elephant in the room situation, men's wearhouse wednesday. there's a soap opera going on. the man that guaranteed we would like the way we looked if we shopped there, booted from the company. then joseph a. bank, attempted to try to take over men's wearhouse, that didn't work, now they're trying to take over joseph a. bank, the stock's up an astounding 62% for the date. it's too hard. i do not blame you if you take profits in men's wearhouse ahead of the quarter.
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there's too much going on. thursday we hear from one of the hottest tech companies out there, sienna, they used to come on the show. i tried myself, i am the head booker now. this ciena quarter is going to be great, not like cisco. heck, they're taking share from cisco, hence why this one's up 50% coming in and cisco up a puny 8%. i bet the stock keeps enjoying higher, and that is buttress by the outstounding quarter we got from finnistar. this stock continues to trade higher and ciena will give it another leg up. the final earnings report we'll get that matters this week is from lululemon athletic. it's just with the product. who will be the new ceo? worries about retail, sports apparel. these are all recipes for me wanting to stay away from lulu. and it's always packed. a lot of guys outside lululemon. what is that? hmm.
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doesn't matter. we need to see who the new ceo will be there and we need to see that this ceo will run the joint for a while before i get comfortable. i've got to see a couple of quarters. and that's because the incredibly good christine day has announced she's leaving, but we don't know why. sorry, that worries me. she's that good. by the way, i would buy the stock of any place she goes, even jc penney if that miracle would ever occur. but otherwise i'm going to pass lulu, too dicey for this guy. finally on friday, something we ought to be remembering. and we get a number that might help keep interest rates down, although not aggressively anymore, and that's the producer price index. we have zero inflation in this country, we're going to get a zero on that number. and i think when people see that, maybe they'll remember that stocks do well when there's low inflation. as someone who hates equities when inflation is raging, i like stocks when inflation is tame.
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watch this number, don't lose sight of the fact as long as there's no inflation system, there's plenty of room for the fed to stay the course if it wants to. here's the bottom line, we got a picture perfect labor report today, at least if you're a bull. that allows us to focus on how companies are doing. not just doing a bull and bear debate about whether the fed's going to do this or that. my two favorite trades, not that those are important, but we can focus on stocks now. my two favorite trades are costco and autozone into the weakness i expect. and i want to hear what pvh and toll brothers say so we can do some ancillary plays. those will be crucial to our making money between now and the end of the year. matt in california, matt? >> caller: boo-yah, money maven. i've got a two-part question. >> not just one, two? >> caller: could at&t's purchase of verizon's unused wireless spectrum be the catalyst to boost its stock past the current $39 ceiling?
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and if not, what else could get it closer to the high of $60 back in 2001? >> i was very concerned by the jpmorgan -- i think it was att got downgraded this week, i didn't like the tone of the downgrade. the downgrade was, basically, if you read it was sprint and t-mobile are coming on. it's been a long time since we've had serious competition to the att/verizon duopoly. i'm going to tell you to stay on the sidelines of att, i'm not coming up with a scenario to buy it unless they do aggressive buying of something themselves and not just spectrum, a whole company. keith in washington, keith? >> caller: hi, this is keith from seattle seahawks super bowl bound! boo-yah! >> how about those other teams. >> caller: washington. coming up -- rig repair? when it comes to the logistics for the toughest deep sea oil and gas finds around the globe, customers have turned here for 90 years. but rocky execution has put the stock in treacherous territory. is it time to scoop up this spec at a deep discount? and later -- digital dollars, your cash is
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moving to the cloud and a new crop of companies are helping to transfer money around the world. but as more dollars are distributed online, which stock can help you collect? cramer's got the play. plus, generating returns? winter's here. friends, family and inclement weather for most of the country. will consumers' demand for snowblowers and generators be the fuel? all coming up on "mad money." don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to madmoney@cnbc.com or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com.
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in a market where many stocks have run up so much, we're always on the lookout for laggard and losers.
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it's time for speculation friday. i got a serious comeback play for you to consider. i'm talking about mcdermott, symbol is mdr. mcdermott is a construction firm building offshore oil and gas facilities. the stock has lived up to the old name of murder because if you own mcdermott, you feel like someone has murdered your portfolio. the stock is down 28% for the year in a fantastic year. that is hideous! however, i wouldn't be talking about it unless i believed this ugly dog could be up to new tricks. the truth is this is a fabulous moment for anyone involved, where mcdermott gets 95% of the revenues. in 2013, oil companies spent a record $644 billion in capital expenditures with tons of it going to offshore projects. the brent price is much higher than america. and looks like record offshore spending for years to come given the many recent offshore discoveries including off the
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coast of africa and the fact the price of oil should remain high. high enough to make ultra deepwater drilling profitable for the foreseeable future. here's a company about engineering, procuring, constructing and floating production systems, pipelines, subsidy systems, and onshore modules. mcdermott is the engineering construction firm offshore oil and gas projects. problem here, company's execution has been down horrendous. thanks to the bidding where they can't make much money as well as a host of cost overruns, the company's on the verge of posting its first annual loss in more than a decade. why the heck am i recommending mcdermott on speculation friday? simple, it announced the old ceo steven johnson who has been running the company some say running the company into the ground for the last four years will be retiring later this month. going to be replaced by david dixon. and before that he ran the u.s. arm of technip a terrific energy construction firms that's one of the principal competitors.
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dixon has 23 years of offshore experience. that's right, in engineering construction for oil fields and i think he's the right guy for the job. i think he has the experience to turn the company around. mcdermott's management is being revamped, but that alone will not make for a turn around, creates the potential for one. what do i think is happening could encourage shareholders? first of all, and this is crucial in any stock story comeback. after all the company's missteps, the expectations for mcdermott have gotten so low that the stock seems to be impervious to bad news. what i regarded as a disappointing quarter. earnings coming in well below expectations. company's backlog decreasing an astounding 9% and serious execution issues in the regions. what happened? the stock did nothing. hmm. we've reached a point where this kind of weakness is expected. it's baked into the stock. and i've got reason to believe the next quarter could be a whole lot better than the last one. mcdermott's already told us that
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they've been selected for $700 million worth of new contracts that will likely be booked in the fourth quarter. that's $700 million figure is bigger than the last two quarters combined. and these new projects are in the middle east, the one area where mcdermott has been executing decently. not only that, the bid for these contracts under the new revamped smarter bidding guidelines, being more disciplined about going after work that pays well and not just chasing the projects that got them in trouble in told days. plus a rock solid balance sheet. $94 million in debt, $300 million in cash. you think that the balance sheet would be reversed. now, mcdermott's trading at 18.8 times next year's earnings estimates, in part because it's been fairly difficult to press. but it has a 17% long-term growth rate. and with new management coming in to clean house, i think the 2014 earnings estimates could end up better than expected in the second half of the year. here's the bottom line. mdr, mcdermott has been murder on your portfolio.
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but with new management coming in with a new vision and renewed discipline, i think it could end up being a terrific comeback story. be careful, buy the stock slowly and into weakness. remember, december is a cruel month for losers and the tax law selling that i think are turning could be brutal here from now until year end and then it clears up. mdr is for me. stay with cramer. coming up -- digital dollars. your cash is moving to the cloud and a new crop of companies are helping to transfer money around the world. but as more dollars are distributed online. cramer's got the play. every day we're working to be an even better company -
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1 million? 2 million? 3 million? the answer is... 3 million homes. by 2030, investments in energy efficiency could help americans save $300 billion each year. take the energy quiz. energy lives here. we're an interactive show here. on monday i got a call from cody in florida. wanted to know what is happening with the downward sled ride in xoom, the billion dollar company that's basically an online money transfer service. i said i wasn't sure. i've got to take a closer look. xoom came public back in february. shot up immediately 21.50 on the first day of trading, for a while, a pretty darn good year, ran up as high as $35.
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but in the last six weeks, xoom has been taken to the wood shed. it has fallen 24%. to understand what's going on here, you need some more backgrounden o the industry that xoom plays in. what's known as the global remittence business. wire money back home to family members in the developing world. there have been a bunch of changes in the remittence businesses lately. but first, let's cover the competitive landscape. xoom is a little upstart competing against much more established players. namely the venerable western union. think of this as david and goliath story. little david has two goliaths, okay. that's right, western union is a $9 billion titan with agents in 510,000 locations operating in over 200 different companies. only a $1.2 billion company, xoom is valued like a growth stock. and even after the pullback in a sky high multiple, money gram trades at a much more humble 14 times earnings. even the money gram has a
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smaller operation than xoom. in 197 countries where xoom is in 30 countries. even though they can't compete in terms of scale, it's got a revolutionary business model. xoom, you don't need to go anywhere, unlike western union you have to go to the nearest location. instead, xoom lets you transfer money over the internet. either through the website or walmart's website. it works on your phone. they can't transfer cash. if you want to use their service, you need to have a credit card or a bank account. and those aren't necessarily easy for immigrant workers to come by these days, especially if they're working off the books. however, at the end of the day, it wasn't competition that caused this hideous selloff from xoom. it was yolanda, the horrible, tragic super typhoon that slammed into asia. after the typhoon hit, seven
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different provinces in the philippines were not just a state of emergency, but national calamity. that's their term, not mine. and the government had to send in tanks just to maintain order. that's awful, but what's it got to do with xoom? everything. xoom gets about 35% of the revenues from the philippines. and this can disrupt their business. this has hurt the company. i think it'll take a couple of quarters before they can recover. i do like xoom's model, though. far more -- far from being concerned about money gram and western union, i think xoom is its own worst enemy. it's not diversified. getting about 70% of the business from three countries. the stock could be worth circling back for speculation, but not until the philippines recovers. i suggest you stay away for the next couple of months. david is out of commission, go to the two goliaths. which one should you bet on? western union or money gram?
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western union has had a very rough time lately. they lost nearly half of their mexican agent network because of compliance issues allowing money gram to sneak in there and take that massive market share. money gram has been the winner in 2013, up nearly 60% year-to-date, but i don't think that can continue in 2014. western union has cut prices pretty aggressively. that's going to put serious pressure on money gram's margins. meanwhile, compliance costs are rising. that's going to hit moneygram harder than western union because it's a smaller player and much more debt relative to the market cap. $800 million in debt to be exact. i think this will make it tough to transfer revenue growth into higher earnings. that's why i'm saying the easy money has been made in moneygram. for 2014, i think that western union could be the one to own. western union. their price cuts should let them
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take back market share from moneygram. stock is super cheap, only 11 times next year's earnings. 8.6% long-term growth. some of the cheapness is because when western union last reported in late october, the company issued downside guidance for the full year. went down a quick 12%. however, the quarter was pretty darn good. the earnings revenues were better than expected. the quarter saw acceleration in the number of transactions, which i regard as the key metric of this business. up 9% year-over-year. jobs keep coming back next year, that means more customers for western union who want to send money home for their families in other countries. i think it's the best way to play the business in 2014. i think that zoom could have a good year, though. but, remember, there could be more pain ahead for this one in the near future. you should wait before you buy. that said, once the pain is over, xoom has a fabulous growth story. increased an astounding 62%.
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the transaction value was up 95%, and their active customers grew by 39%. most important, xoom is still only in 30 countries. they have a lot of room to expand and that means the company has long runway for future growth. just need the issue behind them. here's the bottom line. the problem with xoom is simple. little to do with the competition and everything to do with a horrible typhoon that did immense damage to the philippines. xoom's growth story is still intact long-term. in the meantime, you want a slow, steady, less risky transfer of stocks, i suggest western union which i think will be a total comeback mode versus the moneygram. diana in california. diana? >> caller: hi, jim. >> hi, diana. >> caller: i bought nly about less than a year ago and have lost a significant amount of equity since then. since the stock is lower now, should i buy more or take the loss? >> you know, i don't like it. there was a smart person who said have you looked at the insider buying? and it's probably the most concentrated i've ever seen. i'm not kidding, i could not believe in the size of it.
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here it is at a 52-week low. i'm going to say wait for a bounce. the kind of insider buying is too strong for me to think the stock can go that much lower. i'm not recommending the stock for a buy. not. mike? >> caller: hey, boo-yah, jim. how you doing? >> what's up? >> caller: hey, not much, man. hta. i'm liking it, i already own some. i want to pick up more. it looks like it's bottoming. looks like it's on the upswing. >> the reits have been horrendous, i -- if you can sit -- i actually like hcn more than hta. 5.55 and it's down 10%. that's my recommendation over hta. but i understand the desire to get that kind of yield. i was looking at preferreds today. they've come down so hard. i'm not going to stick my head in the lion's den of the reits. xoom's growth is intact, but not for a while, unfortunately, because of the super typhoon. let's go with goliath, not david, western union and then when the philippines gets back on its feet, we'll go xooming. don't move, "lightning round" is
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next. monday, kick off the trading day with "squawk on the street." live from post nine at the nyse. >> this is kind of good. it all starts at 9:00 a.m. eastern. [ tires screech ]
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it is time. time for the "lightning round" on cramer's "mad money." i tell you whether to buy or sell, play until this sound and then the "lightning round" is over. are you ready, skedaddy. time for the "lightning round" on cramer's "mad money." mikey in new york, mikey? >> caller: boo-yah, jimmy. >> yo, yo, what's happening, mike? >> caller: i got hrt red hat. >> they report next week, my charitable trust has a position. obviously acted very badly this week as did veeva after i thought was a good quarter. the cloud stocks are still under a cloud.
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but i am a believer in red hat and i'm hoping it's a good story because mr. whitehurst does a good job. chaz in michigan, chaz? >> caller: hey, jim. how are you, sir? >> all right. how are you? >> caller: excellent. thanks for asking. let me start off by saying thank you for all the work you and your staff do. i really appreciate it. your knowledge is invaluable. >> you're very kind. we do have a great staff. we work real hard. what's up? >> caller: my question is about depot med, de -- >> yeah, drug delivery system stocks are hot and i like this stock. i think these make a lot of sense. anyone who can get it right will make a ton of money. nick in pennsylvania. nick? >> caller: hey, jim, big boo-yah from haverford college in haverford, pennsylvania. >> what's up? >> caller: calling about cvr symbol. >> the refiners are real good here, that yields about seven, i think it is a buy. i think the refiners are good. there was a difficult article about how the refiners do well and eog is going to do poorly. who said that?
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well, i think he kind of alluded to that and that's why that stock was down. can i go go to tom in new york, tom? >> caller: hello, jim. >> what's up? >> caller: let me say, if there's going to be a bidding war on brain, you might just be a contender. but meanwhile, please tell me, what can i do with my chesapeake? >> i think chesapeake's fine. i want to go back what i said about eog. it hit chesapeake too. the big money was made, the free money is gone. and that sent down the whole group, including continental resources and chesapeake. i'm never going to go against the view short-term, long-term i think chesapeake's worth more than selling, i don't want you to sell it. john? >> caller: boo-yah, jim. >> yo, boo-yah, john. what's going on? >> caller: this is john from marietta. i love the show and books. really helping me with phenomenal gains this year. >> thank you. >> caller: last night you did a spot on tcbi. my stock is a small georgia bank
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united community bank ucbi. >> yeah, this is very similar to texas bank if you look. very good long growth, very good community area. >> buy, buy, buy! >> doing better than it was, and i think you're in good shape with that. i know it's up a lot, but the real good banks are up a lot. phil in new jersey. phil? >> caller: hey, boo-yah to you, jimmy. how are you doing? >> real good. how about you, phil? >> caller: all right. listen. i want to know how you feel about sld -- >> no, i'm not a buyer of silver. i'm not. i did, indeed, say today, that i think rand gold is great. steve in louisiana, steve? >> caller: boo-yah from baton rouge, jimmy boy. >> oh, lsu rocks, boo-yah. >> caller: thank you very much for your book "getting back to even," it ought to be classroom mandatory. >> thank you. >> caller: listen, my stock is a natural gas play. i'm in it at 28 and now it's
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south of 20. westport innovation. >> sorry to hear that. i was hoping it was lng which is now in the 40s. here's the property with westport. look, it's a speculative stock, they're partnered with cummins, my charitable trust owns cummins, not westport, natural gas engine, had them on many times and always the last -- no, the last five times i said, man, you're not doing it. why is that? and they always say wait, wait, wait. same thing with clean energy fuels. i bring these companies on for information. they are speculative stocks, they are not the kind of stocks that my charitable trust would own or i'm recommending. i think if you want to play, you buy cummins, although it's a small piece of that business. can i go to nicholas in indiana? nicholas? >> caller: yeah, this is nick in indiana. i was wondering if you could tell me about the amc ipo coming out. >> oh, man, everyone is asking me about that.
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and they're asking me about another one. there's two of them coming out. i cannot opine on these ipos until i've studied them closely. i have to work on that. i saw it when i saw @jimcramer on twitter. i'll take it home this weekend. i don't have it. let me take one more. one more, don't you think? let's go to amir in texas. >> caller: hi, this is ameer from texas. boo-yah, texas. >> yes. >> caller: our question is about the index. >> going up all the time. >> caller: in -- >> yeah, i think it's an interesting speck. dryships. baltic freight is on fire. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade. >> is vince really the next michael kors?
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i think the only way to decide is the cat walk. michael kors is very big into accessories, okay? like watches and jewelry. handbags. look at this. i bet this cost a pretty penny, right? you get this from hanes, probably, for three bucks. vince, michael kors. this is a vince, too, by the way. stay with cramer. >> can i go to jerry in new york, please, jerry? >> caller: hi, jim, how are you doing? >> i broke my nail doing this -- it's a nice "lightning round," but when you break your nail, it hurts. donna in texas. donna? >> caller: boo-yah, jim.
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old man winter blew through here, i'm talking to you, it's heating up. >> hey, man, i'm so excited, i feel like break dancing right now. >> really? ♪ >> caller: hi, jim, how are you today? >> i don't know. i got bit by a spider, it's killing me. what's up? three spider bites, maybe there were some clothes that had a spider in it? how do you get rid of a spider bite? i got to take a hot bath, i think. that'll do it. ♪ [ bell ringing, applause ] five tech stocks with more than a 10%... change in after-market trading. ♪ all the tech stocks with a market cap... of at least 50 billion... are up on the day. 12 low-volume stocks... breaking into 52-week highs. six upcoming earnings plays... that recently gapped up.
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[ male announcer ] now the world is your trading floor. get real-time market scanning wherever you are with the mobile trader app. from td ameritrade. just by talking to a helmet. it grabbed the patient's record before we even picked him up. it found out the doctor we needed was at st. anne's. wiggle your toes. [ driver ] and it got his okay on treatment from miles away. it even pulled strings with the stoplights. my ambulance talks with smoke alarms and pilots and stadiums. but, of course, it's a good listener too. [ female announcer ] today cisco is connecting the internet of everything. so everything works like never before. [ female announcer ] today cisco is connecting the internet of everything. new business owner, it would be one thing i've learned is my philosophy is real simple american express open forum is an on-line community, that helps our members connect and share ideas to make smart business decisions. if you mess up, fess up. be your partners best partner. we built it for our members, but it's open for everyone.
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last year, right after hurricane sandy leveled large swaths of new york and new jersey, i thought i'd get clever. i saw generac was roaring in the wake of a storm that had knocked out power for millions of people. and then i noticed how briggs and straten the maker of portable generators had done next to nothing and i told you to buy that one in the case of a catch-up play. generac's up 55% year-to-date, briggs and straten down 4%.
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i got this wrong. briggs & stratton is a lawn and garden play. they're more about engines for lawn and garden equipment like the kind you might get from deer. however, while i may have been wrong to recommend it a year ago, it's possible the time could be right for briggs & stratton. they started to ramp up their new product innovation and got a nice restructuring that could cut a decent amount of cost. also taking out capacity in their engine business in order to cut down on bloated inventories. a painful move, one that had to be taken. so let's check in with todd tesks, the chairman and ceo of briggs & stratton. welcome to "mad money." >> great to be here, jim, thanks. >> okay. i know i got it wrong. i had thought you would be more levered to storms. but the storms were more levered to actually the snowstorms, to snowblowers. and your other businesses are very much levered to housing and to the lawn and garden season. so i've got to ask you, are things not better now than they
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were last year when i was way too focused on the big storms? >> well, obviously, jim, the storms do help. obviously we sell off a lot of portable generators, also in the standby generator business. it is helpful to the business. however, when you go back a year, we're coming out of the drought. and so basically the lawn and garden market, you know, hadn't recovered through the housing situation. so now with housing being improving and we are seeing the improvement in housing. la last year the market was up anywhere from 3% to 9% depending on the category. and as we go into this upcoming season, we're hoping -- obviously we're hoping it snows so we can sell some snow throwers, but also as we get into the lawn and garden season, i'm pretty excited about what's coming up because we are seeing the impact of housing. >> now, you've also taught me through your excellent presentations that there is a level of innovation in this business that can move the needle. are you really able to come up
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with something better than the other guys that people might say, you know what, i want to get that briggs & stratton project and not the other guys? is it that different, really? >> well, jim, it is, and what i would encourage you to do as we get to the upcoming season in the spring, there's a number of things we have coming out. obviously on our product side of the business, we have over 40 new models of things coming out. we have -- what you'll find is the quietest lawn mower that's been in the market maybe forever, other than a push manual real mower. as you look at it, there are a number of things we're coming out with and we do believe in it. the last two years have been all about innovation, user driven problem solving is where we're at. and you're going to start to see the impact of that. you saw it last year. but we saw the impact of the drought as we were coming out of the drought last year and inventories coming down. >> a lot of what you sell is actually under other companies' names.
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how will we know it's yours to know it's better? >> well, you remember, all of our engines that we make. we have the briggs & stratton logo on them. what you'll see is the briggs & stratton on the equipment itself. plus what you'll see coming out for this upcoming season, we've got some -- what i think is some of the best pressure washer technology out there. it'll be under the briggs & stratton name. >> will salespeople be efficient enough to be able to explain the difference between the two? >> yeah, i think so. maybe it's a lot less about the people on the floor, but it's all about digital marketing and being on the web. when you look at where we're headed with a lot of this, it's the website, it's getting videos out on the website, videos out on youtube. and really, shoppers today, they do an awful lot of research on the web. we want to show it to them as they go out and do their research. >> wait a second. in other words, briggs & stratton's using facebook?
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twitter? or is it i go to your website or amazon? how does it work? >> well, now, when you look at it, we are using the things you talked about. we're using facebook, we used twitter, youtube, we have our own website. and so, yeah, it's all of the above. and we've spent more money the last few years with regards to websites and digital marketing and so we think that's going to pay off for us come springtime. >> and finally, i know you had that over inventory position. that's gone now. you were saying in your documents the inventories are good. it wouldn't seem to be a lot of discount ahead because no one's got a bloated situation on hand. >> yeah. you know what we found, jim, coming out of the drought of 2012, the inventories were higher level than we wanted them to be or the industry wanted them to be. that kind of worked its way through early on last year into the season and what we saw later in the season was some pretty good sell through. that's ultimately what caused the market to be up and that's
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why we think inventories are in pretty good shape coming into the upcoming season. >> yeah. i wish i had said all those good things about you now. you're so much cheaper than generac is, but it's not the right analog. the right analog and the right thing to follow is housing and weather, which is tough to gauge, but if inventories are lean, you guys will make a ton of money. thank you so much for coming on "mad money." >> great to be here. thanks, jim. >> all right. guys, i like to say when i get it wrong. that gives me the credibility to say if i got it right. i was wrong earlier to recommend this stock because i didn't understand the inventory situation and i didn't understand the drought. those things are now behind it. the new product is ahead of it. and i think todd teske has a darn good story. stay with cramer. every day we're working to be an even better company -
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broken stocks or broken companies? you always have to ask yourself which is it when you see a stock down huge and you're tempted to buy. we know some stocks get clobbered because of short-term misses while others get hurt because of structural concerns that could, indeed, be long lasting. >> don't buy, don't buy. >> last time we saw two stocks get hammered in after hours trading, a beauty products chain and five below the store that sells goods that appeal to teens for very low prices. these have been fantastic growth stocks over the years. i've been a believer in both of them. however, i turned on ulta in the year that worried me as a matter of course. in other words, i didn't notice anything wrong with ulta, but i don't like the management turn
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around. five below, i recognized one of the regional going national stories with a concept of $1 to $5. that's great. i supported the chain ever since i met management and repeated five below with my then teen second daughter. going from $120 to $101 off some cautionary comments and worse than expected earnings. five below dropped $6, going from $48 to $42 off a similar reset. it was way too hard to make a snap judgment based on headlines because that's rarely been the way to go. i'm not saying there aren't instances to save money if you blow out first on the release and ask questions later, and that was the case with cisco, but when you see declines of this magnitude, you should do some studying. you have to listen to the conference calls and compare to the notes. almost immediately on the ulta conference call, i got nervous. listen to the reasons i pulled about what management had to say about the down beat end of the quarter and beyond. quote, tougher than expected
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sales environment. quote, heightened promotional environment of the holiday. quote, holiday promotional holiday season. quote, less certain consumer environment. quote, an environment that looks to be promotional. i mean, wow. this is just pulled quotes. they blame the stars, not themselves. my buddy herb greenberg who said he was nervous about the report before the quarter because of that eyebrow raising management shuffle i talked about. put it out today in the street.com that new management had been confident of the business not that long ago but now the ceo mary dillon seems to have changed her tune saying that ulta, and i quote again, currently conducting an in-depth strategic planning process to prioritize our growth strategies, end quote. that says, wait a second, maybe we're off course here and need to reassess our plan to -- instead of just keep putting up stores willy nilly everywhere while going as promotional as all get out. not about the products, but about the stock. that combined with the constant blaming of the environment tells me, hey, you know what, we may
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have a broken company here. i don't like it. but five below. here's an historically conservative company that admitted it saw weakness around thanksgiving time. to me, this did feel like a one-time glitch. not a broken company, just a broken stock that could easily mend. sure enough, down six much less of a loss as people recognize that the company's being prudent and resetting the bar and now probably beat those estimates without a problem. ulta, i'm worried, no wonder it dropped five more points today from last night's decline. five below, call me a buyer even as it rallied three from the after hours bottom. it's not a broken company. just a stock that i bet will soon be on the mend. stay with cramer. mad about "mad money"? immerse yourself into cramer's world while you watch the show with zeebox, on your phone, tablet or web, get sneak peeks, go behind the scenes and join the conversation for the
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basically repealing the decline, so to speak. let's not get carried away. but next week, we've got big earnings. toll brothers, pvh on tuesday, these will be the tale of the tape. there's always a bull market somewhere, i promise to try to help you find it. i'm jim cramer. i'll see you monday! >> narrator: in this episode of "american greed"... he's a consultant to con men. >> the greed, the greed, american greed -- you want to talk about american greed? the american greed was... without boundary. >> narrator: the brains behind one of the largest scams in history. before it's over, he'll lead federal agents on an international chase, changing locations and identities. deal maker shalom weiss doesn't hide in the shadows. >> the guy is such a flamboyant character. he's big and he's bold and he's brazen and he's loud. >> he was attracted to lights, women, music, gambling. >> narrator: are these the fatal attractions that will do him in?